Cost functions Final Exam Essay

1. The degree of operating leverage is equal to the ____ transplant in ____ divided by the ____ change in ____.2. The short-run cost function is3. Theoretically, in a long-run cost function4. proof from empirical studies of long-run cost-output relationships lends support to the5. In the linear breakeven model, the breakeven sales volume (in dollars) can be raise by multiplying the breakeven sales volume (in units) by6. In a study of banking by asset sizing over time, we can find which asset sizes are tending to become more prominent. The size that is turn more predominant is presumed to be least cost. This is called7. Buyers anticipate that the temporary warehouse seller of unbranded ready reckoner equipment will8. In the long-run, firms in a monopolistically competitive industry will9. In the short-run for a purely competitive market, a manufacturer will stop production when10. A firm in pure competition would shut down when11. Asset specificity is largest when12. Uncertainty includes all of the following except ____.13. ascertain goods are products or services14. Declining cost industries15. Of the following, which is not an economic rationale for public utility code?16. ____ as practiced by public utilities is designed to encourage greater usage and therefore bedcover the fixed costs of the utilitys plant over a larger number of units of output.17. The practice by telephone companies of charging lower long-distance rates at night than during the day is an example of18. When the score elasticity of demand between one product and all other products is low, one is generally referring to a(n) ____ situation.19. In natural monopoly, AC continuously declines due to economies in distribution or in production, which tends to found in industries which face increasing returns to scale. If price were set equal to marginal cost, then20. A cartel is a situation where firms in the industry21. The existence of a kinked demand curve under oligopoly conditions may guide in22. Which of the following is an example of an oligopolistic market structure?23. Even ideal cartels tend to be dubious because24. In a kinked demand market, whenever one firm decides to lower its price,25. Some industries that have rigid prices. In those industries, we tend to